Fort Worth daily gazette. (Fort Worth, Tex.) 1882-1891, 1887-07-05
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PAL ic and ruin. So with the tulip mania.
Two years saw the elimination of it, and
then followed widespread disaster end
financial loss. Everybody had tulips and
nobody had money, and thousands Of
people were reduced in few days from
apparent sfiluenCe to beggary, and the
commercial interests Of the Dutch repub-
/ lie received q shock from which it took
years to recover. During the height CT
the speculative excitement the example
of the Dutch was TO some extent initiated
IN England, and bulls were sold for q
! time on the London Stock Exchange.
But the traffic did not reach the wild fury
Of Holland, and when the reaction came
not much injury was done.
! phree-Quarters of g century after the
/ tulip mania there occurred q speculative
craze In France which has hardly a par
alleI in the history Of financial foIIies. 1t
originated in the brain Of John Law, G
Scotch adrcntureT, vino, after leading a
wild and sCTsm1iug life, found himself
in Paris about the time Of the death Of
Louis NV, in l7Ij. France vas bank
rupt, ruined by disagreement, fraud and
the corruption OF public servants. The
Duke Of Orleans was regent, and TO him
Law proposed the establishment OF na-
tiOnal bank to collect and disburse the
public revenues and to issue paper money
On their security and that of the public
domain. The regent fell in with the plan
and the bank was established n l7l5 with
power TO discount bills and 10 issue
notes, which were to be accepted IL paw
ment OF taxes and to have currency
throughout the kingdom. The plan sue
Ceeded SO well that In the course OF g
year Laws bank notes were worth 10 per
cent. more than gold or silver money.
Large dividends were psid and everybody
wanted some bank stock. Law was de-
Clared the financial genius OF the age and
the Nc ion went into eCstaCies over him.
He now organized what he called the
Mississippi company, the main object Of
which was to COlOnisG the French posses
sions in America, TO send cut miners end
traders, and thus draw en- immense rev.
enue, which would enrich the whole
French nation. Ine French company also
had granted to it exclusive trading privi-
leges in the Eas. Indies, ChiIG and the
south seas, and Law promised an annual
dividend Of st lesst 100 per cent. upon
the shares Of stock. Then com
menced wild scramble for the shares of
the company. Country people crowded
into Paris, and every resident Joined in
the insane rush. Laws nome vas be- /
sieged from morning till night by g rsbble
of dukes, duCheSsG5, mobiles Of al de-
grees, merchants, farmers, labOrer5 and 7
and IN his antG-Chamber they
waited all day long and day after d9y for
their turn 10 come TO obtain the coveted
shares. As soon as obtained, the shared
were taken into the street outside, ADD (
there sold and resold until marvellous
prices were had for t&sm, raislD& TO City
times the face value. All ordihary occu-
patiOns were neglected during this
tine Of frenzy, SGl every extTayg-
gance was INDUCED. People who had
been beggoT5 purchased the cOstliest |
yisnds and rtvelcd In very luxury. The /
IauleHEiCm W.S supposed to be |
at hand, wnen every one VINO chose could
Ttyel in wealth. Some Of the wisest and |
Of spectators, secured !
their profits while they could. The |
palace OF CHXutiliy recently
presented by the Duo G'AumCle to the I
French people, vas built and furnished
out Of the profits Of s speculation IN
shares made by the Due de
Bourbon. But the great mass of the
people di3 not and could not realize their
profits. The time came when the bubble
wss picked, and when that happened the
shares fell 10 nothing and almost the |
whole people were ruined. Such was
the famous "Mlssissippi bubble" which
lasted only about eight months. Law, /
ruined in fortune and reputation, was
obliged 10 fee TO escape the fury OF the
enraged popuIaCe, who but q few weeks /
before had worshipped him IS q deni-
god
The "SCIth Sea Bubble" in England !.
the year following that of tae .
bubble, but it was not so .
nor disastrous in its results. ]
The South Sea Company was formed in .
London TO carry trade TO the South sea,
six years before Laws company was
formed, but it expanded more slowly. 1t .
vas no. connected with the Bank OF En-
gland, out was rival to il, end inal,y
offered 10 take no the whole natiOral
debt 10y means Of the riches it would &C
CURE ID It's trade with the South seas.
Then followed 3 madness OF speculation
in rs shares similar to that Of France. In
August, 1920, each El00 share sold for
El000, and the purIieus Of the Stock E1-
change swarmed with professional and
amateur stock operators Of every
rank and Of both sexes, Sir Robert
WGIpole, who had warned the pee
Die strongly against entering upon such 8
career of speculation, prOfted by the
craze and reaped q handsome fortune,
and a very few others followed his eX-
ample and took their profits, but when
the decline came thousands of people
were hopelessly ruined. QaaTrels among
the directors opened the eyes of the pub
lie, and the great bubble collapsed. In
August, 1920, the shares were bought
eagerly for $1,000; late in September
they could not be sold for ESQ, and
lew months later they dwindled to
nothing.
Two hundred years after the famous
tulip mania in Holland q similar craze
broke out in this country. It was called
he mnrus multicaulis mania, and was as
strange a speculative frenzy as ever oe-sk
cured.
The culture of the silk worm has Been
. fsvorite fancy with q great many good /!
people in this country from the earliest Il
colonial times, and more or less success
las been achieved at il from time to time.1
It is plausible industry, and one can sit
Town and figure upon paper immense
profits at it. AS is we'll known, silk